Form explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Form annexed to the Foreign Exchange (Compounding Proceedings) Rules, 2024 is the application in which a person asks for a contravention to be compounded. It is referred to in rules 4(4), 5(4) and 8. It has ten items, a bank-details block for refunds or payments, an undertaking about investigation by the Directorate of Enforcement, and a declaration. This article goes through them in order.
The Form, as notified on 12 September 2024 in G.S.R. 566(E), is filed with the copy of the memorandum of contravention(s) issued, if any, and a fee of ten thousand rupees plus goods and services tax under rule 4(4) or 5(4). It asks for the applicant's details, whether a notice has been issued under the Adjudication Rules, specific details of the contravention by Act, rules, regulations, notifications, orders and authorisation conditions, any previous compounding, brief facts, the fee details, an undertaking to inform the authority of investigation or adjudication, and a declaration.
Which text is being explained
The Form is annexed to the Foreign Exchange (Compounding Proceedings) Rules, 2024, G.S.R. 566(E), 12th September, 2024, made by the Central Government under clause (b) of sub-section (2) of section 46 read with sub-section (1) of section 15 of the Foreign Exchange Management Act, 1999. See our articles on section 15 and section 46. Later amendments should be checked on the Gazette site. For help with a filing, our FEMA compounding team prepares these applications.
The fee and where the Form goes
Under rule 4(4) the application is made in the prescribed Form to the Foreign Exchange Department, Reserve Bank, and under rule 5(4) to the Director, Directorate of Enforcement, New Delhi. Both rules require a fee of ten thousand rupees plus goods and services tax, as applicable, by demand draft, or National Electronic Fund Transfer (NEFT), or other permissible electronic or online modes of payment, in favour of the compounding authority. Which rule applies depends on the contravention; see the articles on rule 4 and rule 5. Rule 8(1) lets the authority call for more particulars than the Form carries.
The ten items
The heading of the Form reads "", followed by a note that the Form shall be accompanied by a copy of the memorandum of contravention(s) issued, if any.
| Item | What it asks |
|---|---|
| 1 | Name of the applicant (in block letters) |
| 2 | Details of the applicant: (a) full address; (b) phone number; (c) e-mail ID (for an applicant other than an individual, also the name, address, phone number, e-mail ID and designation of the authorised representative); (d) Income Tax PAN; (e) ECS mandate; (f) Goods and Services Tax Identification Number |
| 3 | Whether the applicant is resident in India or resident outside India (with a reference to section 2(v) of the Act) |
| 4 | Whether any notice has been issued under rule 4 of the Foreign Exchange Management (Adjudication Proceedings and Appeal) Rules, 2000, and if so the details |
| 5 | Specific details of the contravention, according to sub-section (1) of section 13 of the Act |
| 6 | Whether a compounding order was passed on an earlier application under these rules, and if so the details |
| 7 | Brief facts of the case |
| 8 | Details of fee for application of compounding |
| 9 | Undertaking on Directorate of Enforcement investigation |
| 10 | Any other information relevant to the case, followed by the declaration |
Item 2: the ECS mandate block
Item 2(e) is an electronic clearing mandate. It asks for the name and PAN of the party (beneficiary), the bank account particulars (bank name, branch name and address, telephone number, type of account as savings or current, account number, the nine digit MICR code and the IFSC code, each as appearing on the cheque book issued by the bank), a checklist of attachments (a photocopy of the PAN card and of a cancelled blank cheque) and a declaration, with date, place, signature and name of the authorised signatory, that the particulars are correct and complete and that the user institution is not to be held responsible if a transaction is delayed or not effected for incomplete or incorrect information. The Form's own layout is such that item 2(f) (the GSTIN) appears after the mandate block, on the next page.
Item 4: notices under the Adjudication Rules
If a notice has been issued under rule 4 of the Adjudication Proceedings and Appeal Rules, 2000, the applicant gives: (a) the name of the adjudicating authority, if any; (b) the date of the notice, with a copy attached; (c) whether the notice mentions that the contravention attracts section 37A or clause (a) of section 3 of the Act; and (d) whether an adjudication order has already been passed. These questions track rule 9, which closes compounding where section 37A applies or an order imposing a penalty under section 13 has already been passed; see the article on contraventions that cannot be compounded. The Adjudication Proceedings and Appeal Rules, 2000 are not in the sources consulted, so what rule 4 of those rules provides is not described here.
Item 5: the specific contravention
Item 5 asks the applicant to state the contravention by reference to six heads under sub-section (1) of section 13: (a) Act; (b) Rules; (c) Regulations; (d) Notifications; (e) order issued in exercise of the powers under the Act; and (f) condition subject to which an authorisation was issued by the Reserve Bank. See our article on section 13.
Item 6: earlier compounding
Item 6 asks whether a compounding order was passed on an earlier application under the Rules. If so, it asks for the date of that application, the contravention sought to be compounded, the date of the compounding order and the date of the certificate issued by the Reserve Bank on payment of the amount imposed. This links to the three-year bar in rules 4(2) and 5(2).
Item 9: the undertaking
The applicant undertakes to inform the compounding authority immediately in writing if any investigation proceedings are initiated by the Directorate of Enforcement against the applicant, or the adjudication order is passed by the adjudicating authority, at any time afterwards but on or before the date the compounding order is issued. The Form speaks only of "the compounding authority prescribed in rule 4", although rule 5 sets out a second compounding authority, the Directorate of Enforcement; the text is printed that way and is not corrected here.
Item 10: other information and declaration
Item 10 invites any other relevant information. The declaration under it says that, as far as the applicant knows and believes, the particulars are true and correct, and that the applicant is willing to accept any direction or order of the compounding authority in connection with compounding the case. It carries a date and the applicant's signature.
Before and after the Form
For the Reserve Bank's own guidance on where and how to apply, see our article on the Master Direction on compounding. After filing, the steps in rules 8 to 13 follow, as set out in the article on procedure, time limit and payment. A draft application layout is in our draft template.
Example
Lotus Components Pvt Ltd applies to the Reserve Bank for a contravention involving a sum within the Assistant General Manager slab. It attaches the memorandum of contravention it received, if any, fills item 2 with its address, PAN, GSTIN and an authorised representative, states in item 3 that it is resident in India, answers item 4 "No" if no notice has been issued under the Adjudication Rules, sets out in item 5 the provision of the regulation contravened, records in item 6 that it has no earlier compounding order, writes the facts in item 7, gives the demand draft details in item 8, signs the undertaking in item 9 and the declaration in item 10. It pays ten thousand rupees plus goods and services tax.
Common mistakes
- Omitting the memorandum of contravention when one has been issued.
- Leaving item 4(c) blank when a notice has been issued. It asks directly about section 37A and clause (a) of section 3.
- Not recording an earlier compounding in item 6.
- Overlooking that the undertaking must be honoured up to the date of the compounding order.
Need help with the Form?
An incomplete Form can delay the whole process, because the one hundred and eighty day clock in rule 8(2) runs only from a complete application. Our FEMA compounding team can fill, check and file the Form with the right authority.
Key takeaways
- The Form has ten items and is filed with the memorandum of contravention(s), if any.
- The fee is ten thousand rupees plus goods and services tax, by the modes in rules 4(4) and 5(4).
- Item 5 follows the heads of sub-section (1) of section 13.
- Item 9 is an undertaking to inform the authority of investigation or adjudication.
- The undertaking refers only to "the compounding authority prescribed in rule 4".
Read next
- Compounding procedure, time limit and payment
- Where and how to apply for compounding: RBI Master Direction
- FEMA compounding application: draft template
- How to apply for FEMA compounding
Disclaimer: Based on the rules, regulations and Reserve Bank Master Directions under the Foreign Exchange Management Act, 1999 that this article names, each in the version and up to the date stated in the article, as consulted on 2 October 2026. Some texts are third-party copies or older prints and are identified as such. Limits, forms and time limits change by amendment and circular; later changes should be checked on the Reserve Bank and Gazette sites. This article is general information, not legal advice; check the official text before acting.